LANSING, MI (WKZO) - A Michigan House committee has approved a proposal to move up an income tax rollback scheduled for January, up three months to October from after the election to before the election.
If passed in both the House and Senate, it would reduce the state’s income tax rate a fraction of a percent, from 4.35 to 4.25 percent. Republican House Representative Margaret O’Brien of Portage says it will give the middle class a boost. Democrat Katie Segal of Battle Creek says that’s a drop in the bucket compared to what lower and middle class income earners lost to the new retirement tax, and the elimination of homestead, child and charitable giving tax deductions, the EITC, and a list of other tax credits.
Democrats voted for it, but complained all the way. They say the higher income brackets will get more money back because of Michigan’s flat rate.